First, it was publicly traded private aircraft charter company Wheels Up that disclosed that its CEO had departed amidst financial losses. Work is underway to try to improve the balance sheet. Next, says industry observer Brian Foley, an article published in the Financial Times indicated that privately owned VistaJet has been flagged by its auditor Ernst and Young: “a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern.” Its founder and chairman has subsequently taken to the airwaves denying that this means any risk to the company.

"Just like dominoes, a third albeit smaller company, Jet It, closed its doors altogether, telling its customers to find someone else to manage the fractional shares of aircraft they own," says Foley. "The company blames the manufacturer Honda Aircraft Company for its situation but has parked its other makes and models as well. That was immediately followed by private aircraft charter firm Executive Airlink ending flights and advising customers to make alternate plans."

Collectively these firms are affiliated with a fleet of hundreds of private aircraft worth billions, with some common themes among them.

Some of these businesses were highly leveraged in a capital-intensive business with no evidence of ever having been profitable. Compounding and expediting the problem, private aircraft charter usage has tumbled around 25 per cent year-on-year since its pandemic high, when private flyers were willing to pay a premium to avoid crowded airports and airliners. Some operators may have become too reliant on picking up sub-charter business from other charter companies short on lift.

Foley believes that before the end of the year others in the industry matching this profile could also emerge. That said, established companies with a record of profitability could benefit from any client outflows from these companies, which have lamented lost sales due to trips being flown below cost. After the dust settles, those who remain should be in a healthier business environment.

Potential impacts beyond employees, shareholders and customers include, he says, other aircraft lenders, unpaid service providers and depressed model-specific aircraft values should any be divested from the fleets. Longer term, the business aviation industry may have a harder time attracting further investment due to long memories on Wall Street, concludes Foley.